Reference no: EM132576795

The details below were extracted from the accounting records of Angelina Ltd (a company in the process of liquidation).

40 000 $1 preference shares fully paid $ 40 000

120 000 $1 ordinary shares paid to 50 cents $ 60 000

$ 100 000

Cash available (after payment of all creditors) $10 000

Assume that the constitution of Angelina Ltd states that in the event of liquidation, all shares are to rank equally, based on the number of shares held, in distributing any surplus or deficiency.

Question 1: For preference shareholders, what is the amount of the actual refund or call?

Group of answer choices

Option 1: A call of $23 333

Option 2: A call of $22 500

Option 3: A refund of $10 000

Option 4: A refund of $17 500